|
Report Date : |
24.02.2012 |
IDENTIFICATION DETAILS
|
Name : |
SOUTHERN PETROCHEMICAL INDUSTRIES CORPORATION LIMITED |
|
|
|
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Registered
Office : |
South India House, 99, Armenian Street, Madras – 600001, Tamilnadu |
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Country : |
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|
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Financials (as
on) : |
31.03.2011 |
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|
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Date of
Incorporation : |
18.12.1969 |
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Com. Reg. No.: |
18-005778 |
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Capital
Investment / Paid-up Capital : |
Rs.1787.784 Millions |
|
|
|
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CIN No.: [Company Identification
No.] |
L11101TN1969PLC005778 |
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|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
CMBS03576G CMBS03407F MRIS01736A CMBS04703G |
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PAN No.: [Permanent Account No.] |
AAACS4668K |
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Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchange. |
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Line of Business
: |
Manufacturing and Marketing of Ammonia, Urea, Complex Fertilisers
(DAP and NPK) in terms of P2O5, Aluminium Fluoride,
Caustic Soda, Liquid Chlorine, Hydrochloric Acid, Ammonium Chloride,
Sulphuric Acid, Phosphoric Acid and Penicillin-G (MMU). |
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|
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No. of Employees
: |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
Ca (20) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with full
security |
|
Status : |
Moderate |
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Payment Behaviour : |
Slow |
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Litigation : |
Clear |
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Comments : |
Subject is an old and established company having moderate track. There
appears huge accumulated losses recorded by the company. However, trade
relations are reported as fair. Business is active. Payments are reported to
be slow. The company can be considered for business dealings on a secured trade
terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – September 30, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
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Restricted |
C2 |
|
Off-credit |
D |
LOCATIONS
|
Registered Office : |
South India House, 99, Armenian Street, Madras – 600001, Tamilnadu,
India |
|
Tel. No.: |
Not Available |
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Fax No.: |
Not Available |
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E-Mail : |
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Website : |
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Head Office : |
SPIC House, 88 Mount Road, Guindy, Chennai 600 032 |
|
Tel. No.: |
91.44.22350245 |
|
Fax No.: |
91.44.22352163 |
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E-Mail : |
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|
Corporate Office : |
73, Armenian Street, Chennai – 600 001, Tamilnadu, India |
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Factory : |
Fertilizer Division SPIC Nagar, Tuticorin 628 005 Pharmaceuticals Division Penicillin - G Plant , Plot No.C 14-16, SIPCOT Industrial
Complex, API Plant, Plot No.3and4, NH-7, Maraimalai Nagar 603
209 Formulations Plant, Plot
No.5, NH-7, Maraimalai Nagar 603 209 Biotechnology Division Agro Biotech Centre Chitrai Chavadi, Pooluvapatti Post, Bioproducts Agro Industrial Complex Seed Conditioning Plant |
DIRECTORS
As on 31.03.2011
|
Name : |
Dr. A C Muthiah |
|
Designation : |
Chairman |
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|
Name : |
Mr. Ashwin C Muthiah |
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Designation : |
Vice Chairman |
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Name : |
M S Shanmugam, I.A.S. |
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Designation : |
Director |
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Name : |
Mr. T K Arun |
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Designation : |
Director |
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Name : |
Mr. B Elangovan |
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Designation : |
Director |
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Name : |
Mr. M Jayasankar |
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Designation : |
Director |
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Name : |
Mr. B Narendran |
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Designation : |
Director |
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Name : |
Mr. Thirumathi Neeta Mukerji |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. N Rajeeva Prakash |
|
Designation : |
Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
NOT AVAILABLE
BUSINESS DETAILS
|
Line of Business : |
Manufacturing and Marketing of Ammonia, Urea, Complex
Fertilisers (DAP and NPK) in terms of P2O5, Aluminium
Fluoride, Caustic Soda, Liquid Chlorine, Hydrochloric Acid, Ammonium Chloride,
Sulphuric Acid, Phosphoric Acid and Penicillin-G (MMU). |
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Products : |
|
PRODUCTION STATUS AS ON 31.03.2011
|
PRODUCTS# |
Unit |
Licensed
Capacity |
***Installed
Capacity |
Actual
Production |
|
Ammonia |
MT |
352000 |
*363000 |
175392 |
|
Urea |
MT |
** |
*620400 |
297650 |
|
Complex Fertilisers (DAP, NPK) In terms of P2O5
(Phosphorous Pentoxide) |
MT |
** |
278800 |
49427 |
|
Single Super
Phosphate (SSP In terms of P2O5 (Phosphorous Pentoxide) |
MT |
18400 |
18400 |
2325 |
|
Aluminium Fluoride |
MT |
** |
*10000 |
3388 |
|
Sulphuric Acid |
MT |
150000 |
192000 |
153150 |
|
Phosphoric Acid |
MT |
52800 |
52800 |
26189 |
|
Pencillin-G (MMU) |
MT |
** |
****2460 |
- |
# Includes products for captive consumption.
* Reassessed capacity by Government of India.
** These products are delicensed.
*** As certified by the Management, but not verifi ed by Auditors, being
a technical matter.
**** Formal approval yet to be received.
GENERAL INFORMATION
|
No. of Employees : |
Not Available |
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Bankers : |
Manufacturing and Marketing of Ammonia, Urea, Complex
Fertilisers (DAP and NPK) in terms of P2O5, Aluminium
Fluoride, Caustic Soda, Liquid Chlorine, Hydrochloric Acid, Ammonium
Chloride, Sulphuric Acid, Phosphoric Acid and Penicillin-G (MMU). |
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Facilities : |
* Includes debentures
assigned to Asset Reconstruction Company (India) Limited (ARCIL) Rs.1556.700
Millions (Previous Year Rs. 1556.700 Millions) ** Represent
borrowings from certain banks and financial institutions which have been
assigned to ARCIL, stated net of repayments appropriated by ARCIL. In the
absence of information regarding the appropriation towards debentures and
interest accrued thereon assigned to ARCIL, no part of the amount repaid has
been adjusted against the outstanding debentures assigned to ARCIL. $ Includes the
amounts due to a financial institution which is not a party to CDR re-work
package dated 13 March 2010 Notes: 1. The secured
loans as above are secured by a pari-passu
charge, by way of joint equitable mortgage, on immovable and
movable properties of the Company, both present and future, hypothecation of
inventories and all present and future book debts of the Company including
Government subsidies,(except inventories and concession relating to
phosphatic fertilisers which has been assigned to another bank pledge of
Company’s investments in equity of other companies identified for divestment,
Personal Guarantee of two Director(s) and by pledge of shareholding of the
private promoters in the Company. 2. As per the
rework package of CDR dated 13 March 2010 (read with Term Sheet of ARCIL
dated 28 March 2010), the repayment schedule is for the total secured loans
including debentures and accordingly the debentures do not have a separate
redemption Schedule. The amount repayable within one year, as per the rework
package of CDR dated 13 March 2010 (read with Term Sheet of ARCIL dated 28
March 2010), is Rs. 3494.000 Millions (previous year Rs. 6297.800 Millions). 3. As per the
rework package dated 13 March 2010 (read with Term Sheet of ARCIL dated 28
March 2010), all the repayments including to those lenders not assigned to
ARCIL (other lenders) are made through ARCIL, who distributes them to the
respective lenders. During the year 2010-11 the company has paid to ARCIL Rs.
4655.568 Millions (Previous Year Rs. 3599.947 Millions). Out of the total
payment of Rs. 8255.515 Millions, based on the information available, ARCIL
had appropriated Rs. 5134.155 Millions and distributed Rs. 1084.667 Millions
to other lenders. Accordingly the balance dues against various categories of
such other lenders are net of the said amount of Rs. 1084.667 Millions
distributed to them. The balance amount of Rs. 2036.693 Millions whose
distribution details are not available is shown as deduction from the
outstanding dues to lenders. 4. Secured loans
other than those due to ARCIL are subject to confirmation by respective
lenders.
# Amount repayable
within one year Rs.2849.342 Millions (Previous year Rs.2182.861 Millions). |
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Banking
Relations : |
-- |
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|
|
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Auditors : |
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|
Name : |
Fraser and Ross Chartered Accountants |
|
Address : |
ASVN Ramana
Tower, 52, Venkatnarayana Road,
Chennai - 600 017, Tamilnadu, India |
|
|
|
|
Subsidiaries : |
·
Orchard Microsystems Limited ·
Indo-Jordan Chemicals Company Limited, Jordan
(ceased to be a subsidiary with effect from 21 April 2010) ·
SPIC Fertilizers and Chemicals Limited, Mauritius ·
SPIC Fertilizers and Chemicals, FZE, Dubai ·
SPEL Semiconductor Limited ·
SPEL America Inc., USA ·
SPIC Petrochemicals Limited (ceased to be a
subsidiary – with effect from 14 May 2010 |
|
|
|
|
Associates : |
·
Tuticorin Alkali Chemicals and Fertilisers
Limited ·
Manali Petrochemical Limited (ceased to be an
Associate with effect from 9 March 2011) ·
Gold Nest Trading Company Limited ·
EDAC Engineering Limited (ceased to be an
Associate with effect from 27 October 2010) |
|
|
·
|
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Joint Ventures : |
·
Tamilnadu Petroproducts Limited ·
National Aromatics and Petrochemicals Corporation
Limited |
|
|
|
|
Enterprise owned
by/over which Key Management Personnel is able to exercise significant
influence : |
·
Wilson International Trading Pte Limited,
Singapore ·
Manali Petrochemical Limited |
CAPITAL STRUCTURE
As on 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
316000000 |
Equity Shares |
Rs.10/- each |
Rs.3160.000 Millions |
|
5500000 |
Redeemable cumulative preference shares |
Rs.100/- each |
Rs.550.000 Millions |
|
30000000 |
Fully Compulsorily Convertible preference (FCCP) shares |
Rs.18/- each |
Rs.540.000 Millions |
|
|
TOTAL |
|
Rs.4250.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
166278374 |
Equity Shares |
Rs.10/- each |
Rs.1662.784
Millions |
|
300000 |
14.50%
Redeemable cumulative non-convertible preference shares |
Rs.100/- each |
Rs.30.000
Millions |
|
850000 |
11.50%
Redeemable cumulative non-convertible preference shares |
Rs.100/- each |
Rs.85.000
Millions |
|
100000 |
10.00%
Redeemable cumulative non-convertible preference shares |
Rs.100/- each |
Rs.10.000
Millions |
|
|
TOTAL |
|
Rs.1787.784 Millions |
Notes:
1. Equity shares include:
(a) 1,70,00,000 shares allotted as fully paid
up bonus shares, by capitalisation of Rs. 170.000 Millions, from General
Reserve.
(b) 1,66,66,666 shares of Rs. 10 each fully paid
up, issued in the year 2009-10 to Asset Reconstruction Company (India) Ltd.,
(ARCIL) at an issue price of Rs. 18 per share inclusive of a premium of Rs. 8
per share in accordance with SEBI ICDR Regulations, 2009 by conversion of
secured debts of a sum of Rs. 300.000 Millions into equity at the meeting of
the Board of Directors held on 30 March 2010.
(c) 65,58,676 shares issued in the year 2009
-10 on conversion of same number of Fully Compulsorily Convertible Preference
(FCCP) shares of the face value of Rs. 10 each fully paid up at a premium of
Rs. 8 per share at the meeting of the Board of Directors held on 31 March 2010.
(d) 2,12,19,101 shares issued during the year
on conversion of same number of FCCP shares of the face value of Rs. 10 each
fully paid up at a premium of Rs. 8 per share at the meeting of the Board of
Directors held on 12 October 2010 after obtaining the exemption from SEBI under
SEBI Takeover Code, vide its order dated 28 September 2010, from the
requirement of making of a public announcement.
(e) 32,14,734 shares of Rs 10 each fully paid
up, at an issue price of Rs 19 per share inclusive of premium of Rs.9 per share
in accordance with SEBI ICDR Regulations,2009 alloted to secured lenders on
conversion of secured debts of Rs. 61.080 Millions at the meeting of the Board
of Directors held on 8 November 2010. The above allotment is in pursuant to the
approval of the Board at its meeting held on 6 August 2010 and the shareholders
at the AGM held on 21 September 2010.
(f) 1,06,71,001 shares of Rs 10 each fully
paid up, at an issue price of Rs 20 per share inclusive of premium of Rs 10 per
share in accordance with SEBI ICDR Regulations, 2009 alloted to ARCIL on
conversion of secured debts of Rs. 213.420 Millions at the meeting of the Board
of Directors held on 8 December 2010. The above allotment is in pursuant to the
approval of the Board at its meeting held on 28 October 2010 and the
shareholders at the EGM held on 29 November 2010.
2. Preference shares:
(a) 14.50% Redeemable cumulative non-convertible
preference shares of Rs. 30.000 Millions issued on private placement basis,
redeemable at par after the expiry of 60 months from the date (s) of allotment,
have fallen due for redemption during the year 2001-02.
(b) 11.50% Redeemable cumulative
non-convertible preference shares of Rs. 85.000 Millions issued on private
placement basis, redeemable at par after the expiry of 36 months from the date
(s) of allotment, have fallen due for redemption during the year 2002-03.
(c) 10.00% Redeemable cumulative
non-convertible preference shares of Rs.10.000 Millions issued on private
placement basis, redeemable at par after the expiry of 36 months from the date
(s) of allotment, have fallen due for redemption during the year 2003-04.
(d) Pursuant to the approval of the Board at
its meeting held on 25 January 2010 and the shareholders at the EGM held on 22
February 2010, FICON Holdings Ltd., Mauritius (FICON) a promoter group entity
remitted Rs.500.000 Millions and was allotted 2,77,77,777 FCCP shares of Rs. 18
each with each FCCP share compulsorily and mandatorily convertible in multiple
tranches to one equity share of Rs. 10 each, fully paid up at an issue price of
Rs. 18 which is inclusive of a premium of Rs. 8 per share, in accordance with
the Securities and Exchange Board of India (Issue of Capital and Disclosure
Requirements) Regulations, 2009 (“SEBI ICDR Regulations”).
Out of this 65,58,676 FCCP shares were
converted in to Equity shares of face value Rs. 10 each fully paid up at a
premium of Rs. 8 per share on 31 March 2010. During the year, the balance of
2,12,19,101 FCCP shares were converted into equity shares of Rs. 10 each at a
premium of Rs. 8 per share.
FINANCIAL DATA
[all figures are in
Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
1787.784 |
1818.679 |
1204.482 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
2868.285 |
2562.890 |
2377.087 |
|
|
4] (Accumulated Losses) |
(14917.047) |
(15736.883) |
(14491.226) |
|
|
NETWORTH |
(10260.978) |
(11355.314) |
(10909.657) |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
11846.766 |
16776.835 |
21999.463 |
|
|
2] Unsecured Loans |
5479.218 |
5215.818 |
5147.517 |
|
|
TOTAL BORROWING |
17325.984 |
21992.653 |
27146.980 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
7065.006 |
10637.339 |
16237.323 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
8250.711 |
10495.048 |
12274.212 |
|
|
Capital work-in-progress |
241.535 |
276.578 |
342.340 |
|
|
|
|
|
|
|
|
INVESTMENT |
560.146 |
2385.442 |
5756.153 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
1681.617
|
1080.253 |
1206.477 |
|
|
Sundry Debtors |
1092.652
|
717.139 |
527.505 |
|
|
Cash & Bank Balances |
996.473
|
1826.472 |
2877.230 |
|
|
Other Current Assets |
0.000
|
0.635 |
0.656 |
|
|
Loans & Advances |
2728.306
|
1512.327 |
1637.219 |
|
Total
Current Assets |
6499.048
|
5136.826 |
6249.087 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
6920.140
|
6154.051 |
6950.579 |
|
|
Other Current Liabilities |
1519.238
|
1459.752 |
1386.892 |
|
|
Provisions |
47.056
|
42.752 |
46.998 |
|
Total
Current Liabilities |
8486.434
|
7656.555 |
8384.469 |
|
|
Net Current Assets |
(1987.386)
|
(2519.729) |
(2135.382) |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
7065.006 |
10637.339 |
16237.323 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
17290.241 |
4170.651 |
3777.881 |
|
|
|
Other Income |
334.517 |
1057.648 |
513.635 |
|
|
|
TOTAL (A) |
17624.758 |
5228.299 |
4291.516 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Purchases of finished goods |
196.029 |
159.983 |
89.930 |
|
|
|
Manufacturing and other expenses |
16522.875 |
4712.942 |
4689.095 |
|
|
|
Exceptional item |
(1058.576) |
429.336 |
4477.303 |
|
|
|
TOTAL (B) |
15660.328 |
5302.261 |
9256.328 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
1964.430 |
(73.962) |
(4964.812) |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
255.104 |
204.951 |
1277.431 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
1709.326 |
(278.913) |
(6242.243) |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
889.490 |
966.744 |
824.552 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
819.836 |
(1245.657) |
(7066.795) |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
0.000 |
0.000 |
5.288 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H)
(I) |
819.836 |
(1245.657) |
(7072.083) |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
(15736.883) |
(14491.226) |
(7419.143) |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
(14917.047) |
(15736.883) |
(14491.226) |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export on FOB basis |
552.975 |
293.586 |
446.600 |
|
|
|
Other Earnings |
8.241 |
13.060 |
55.967 |
|
|
TOTAL EARNINGS |
561.216 |
306.6460 |
502.567 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
2150.480 |
943.056 |
13.993 |
|
|
|
Stores & Spares |
4.216 |
4.001 |
18.194 |
|
|
|
Capital Goods |
88.967 |
25.333 |
2.072 |
|
|
TOTAL IMPORTS |
2243.663 |
972.390 |
34.259 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
|
|
|
|
|
|
Basic |
5.51 |
(11.69) |
(65.68) |
|
|
|
Diluted |
5.51 |
(9.77) |
(65.68) |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2011 |
30.09.2011 |
31.12.2011 |
|
|
UnAudited |
UnAudited |
UnAudited |
|
Net Sales |
9739.720 |
11014.650 |
7207.080 |
|
Total Expenditure |
9168.580 |
10479.400 |
7160.620 |
|
PBIDT (Excl OI) |
571.140 |
535.250 |
46.460 |
|
Other Income |
16.350 |
28.150 |
4.070 |
|
Operating Profit |
587.490 |
563.400 |
50.530 |
|
Interest |
86.790 |
411.460 |
152.260 |
|
Exceptional Items |
(215.000) |
43.510 |
510.160 |
|
PBDT |
285.700 |
195.450 |
408.430 |
|
Depreciation |
188.660 |
192.390 |
127.790 |
|
Profit Before Tax |
97.040 |
3.060 |
280.640 |
|
Tax |
0.000 |
259.250 |
0.000 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
97.040 |
(256.180) |
280.640 |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
|
Net Profit |
97.040 |
(256.180) |
280.640 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
4.65
|
(23.83)
|
(164.79) |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
4.74
|
(29.67)
|
(187.06) |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
5.56
|
(7.97)
|
(38.15) |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.08
|
0.11
|
0.65 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
2.52
|
(2.61)
|
(3.26) |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.77
|
0.65
|
0.75 |
LOCAL AGENCY FURTHER INFORMATION
OPERATING RESULTS
SPIC operates its business in four divisions:
• The Fertilizer Division manufactures
fertilizer intermediates used for the production of fertilizers and nitrogenous
and phosphatic fertilizers.
• The Pharmaceuticals Division manufactures
Penicillin-G, Potassium (fermentation-based), Active Pharmaceutical
Ingredients, finished dosage products, industrial enzymes and plant-based
nutraceuticals.
• The Engineering/Construction Services
Division offers specialized and extra high voltage transmission line
construction, railway electrification, operation and maintenance and related
engineering services.
• The Agri-business Division offers products
for sustainable agricultural development with a global footprint tissue culture
plants and hybrid seeds.
OPERATIONS
Fertilizer Division
Fertilizer Division’s Urea plant was started
after a gap of three and a half years and stabilized; production was suspended
due to constraints in working capital and also the anomaly in the fertilizer
policy. Since the Ammonia and Urea plants were idle for a long time, elaborate
pre-commissioning activities, tests and trials were carried out in all
equipments before starting the plants during October 2010 and the plants are
operating well since then. Phosphatic Plants and DAP production were also
resumed from November 2010. The Company has made necessary arrangements for
working capital. During August 2010, the Company has commissioned Single Super
Phosphate Plant with a capacity of 350 MT per day. Further, trading of Micro
Nutrients / Plant Growth Promoters were commenced which achieved a turnover of
over Rs.110.000 Millions.
Fertilizer Policy
The Government of India introduced ‘Nutrient
Based Subsidy’ (NBS) for Phosphatics effective 1 April 2010. NBS is a welcome
move for Fertilizer Industry and Indian Agriculture. The rise in production of
food grains is partly attributed to the introduction of the NBS, which
encourages farmers to use micronutrients depending on deficiency, unlike the
earlier rampant use of nitrogenous fertilizers.
In order to minimize the cost of production of
Urea from Naphtha based plants, the Government has announced that all Naphtha /
Fuel Oil based plants producing high cost Urea have to necessarily convert to
gas by March 2013 and stated that the subsidy on Urea would be computed on the
basis of the gas prices after the said period. This policy would render the
Naphtha-based Urea plants unviable. Though, presently, the Company is producing
Urea
Pharmaceuticals Division
SPIC’s Pharmaceuticals Division consists of
four sub-divisions, namely, Penicillin-G (Pen-G), Active Pharmaceutical
Ingredients (APIs), Formulations and Industrial Enzymes.
Pen-G business: The production activity
was shut down since January 2010 due to (a) the continued availability of cheap
imported Pen-G from China and Mexico; (b) import of Pen-G based forward
derivatives and API’s from China and Mexico; and (c) high cost of production in
India due to increased cost of vital inputs. The Company’s efforts for imposing
anti-dumping duties on Pen-G and 6-APA from China and Mexico, though resulted
in getting the final findings recommended by the Ministry of Commerce, was
rejected by the Ministry of Finance which
prevented the Company from competing in a
level playing field.
API: The production activity of the Unit was
suspended at Maraimalainagar since July 2010, pursuant to possession of the
land and building by ARCIL. Creation of infrastructure, recommencing
production, regaining market share and resurfacing in a meaningful and
profitable manner, warrant substantial investment which may not be commercially
viable.
Further, ARCIL has issued notice and taken
over the possession of the immoveable properties of Pharma Unit at Cuddalore.
In view of the aforesaid reasons, including ARCIL’s action, the Board of
Directors during July 2011, has decided to permanently stop the operations of
the said Units and to take appropriate follow up steps.
Formulations: The Unit had improved its
top-line and bottom-line in the current year, particularly due to enhanced
export to Myanmar and Haiti, though the business is not encouraging in Iran and
Sri Lanka. The increase in the volume of third party manufacturing services
coupled with retention of existing customers have resulted in improved
operations.
Industrial Enzymes: The Unit had achieved
sequential growth in the last 3 consecutive years, despite the relocation of
infrastructure from Maraimalainagar to Cuddalore during October 2010. Exports
to China and other countries have witnessed growth. The Leather, Tea and
Poultry segments have performed well with sustained growth over the last 3
years. Nevertheless, the growth of the Textile segment is affected due to the
closure of the Units in textile belts consequent to orders of the judiciary.
This segment is expected to improve, post the remedial measures proposed by the
textile units.
Engineering/Construction Services Division
SPIC-SMO, comprising Transmission and Distribution
Unit (T and D) and Operation, Maintenance and Engineering Unit (OM and E) is
one of the Pioneers in implementing complex large-scale projects in
Engineering, Procurement and Construction basis in power transmission and
distribution, railway electrification and maintenance services in chemical,
petrochemical, oil and gas, and fertilizer sectors. It achieved a turnover of
Rs.2463.800 Millions and executed several contracts in India involving
extra-high voltage transmission lines, operation and maintenance services,
turnaround maintenance, inspection maintenance and repair services and railway
electrification works.
Transmission and Distribution Unit (T and D): During the year, the Unit achieved a turnover of Rs.2400.900 Millions. A
major transmission line project of 400 kV double circuit connecting Damoh to
Bhopal in Madhya Pradesh was successfully completed during the year. It is
presently executing 9 transmission line projects for Power Grid Corporation of
India (Powergrid) in Chattisgarh, Tamil Nadu, Haryana, Rajasthan, Punjab and
Maharashtra and 1 rural electrification project for Powergrid in Uttar Pradesh,
under Government of India’s Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY)
Scheme, Besides, 4 railway electrification projects for Central Organisation
for Railway Electrification (CORE), in Uttar Pradesh, Orissa and Bihar and 3
transmission lines and 2 sub-station projects in Jammu and Kashmir, for the
Power Development Department, Government of Jammu and Kashmir, are also under
execution.
Operation and Maintenance Unit (O and M): During the year, the Unit has made inroads into O and M services for
medium scale chemical industries and there exists a good potential to expand
the business in this sector.
Agri-business Division
During the year, the Tissue Culture Laboratory
at Coimbatore recorded encouraging results despite production being affected
due to 20% power cut throughout the year. The Division recorded sales of Banana
and Gerbera plants of 1.900 Millions and 1.100 Millions respectively. During
the year, 2.456 Millions plants of Banana, and 1.606 Millions plants of Gerbera
were produced. The Division recorded a turnover of Rs.1,23.500 Millions.
SUBSIDIARIES/JOINT VENTURES/INVESTMENTS
SPEL Semiconductor Limited (SPEL)
SPEL produced 317.06 million ICs during
2010-11 as against 258.11 million ICs in 2009-10. Sales increased to Rs.913.300
Millions, registering a 4.78% growth over the previous year’s figure of
Rs.871.600 Millions. PAT was Rs.45.300 Millions during 2010-11 compared to
Rs.61.000 Millions during 2009-10. The reduced PAT was due to pricing pressures
that resulted from the recession. The outlook for 2011-12 looks promising with
a 9% growth predicted; global semiconductor revenues are expected to reach $
325 bilion up from $298 billion in 2010.
Tamilnadu Petroproducts Limited (TPL)
During 2010-11, the overall performance of
TPL’s Linear Alkyl Benzene (LAB) operations has surpassed that of the previous
year with increased production and sales. The installation of new molecular
sieves in the n-paraffin Unit in January 2010 has yielded results improving the
normal paraffin plant capacity utilization. LAB production during the year was
higher at 95,780 MT.
The steady increase in crude prices during the
year has not affected the performance significantly. TPL continues to derive
energy conservation benefits year after year through advanced process controls
and other stringent measures. During the year, TPL has taken up revamp of the
pre-fractionation unit, to be followed by the revamp of the balance section of
the n-paraffin unit. This will help to increase further the n-paraffin capacity
in the years to come. New markets are being identified for increasing the sales
volume.
Among the Indian Companies, TPL continues to
be the leader in meeting the domestic supplies of LAB to leading detergent
manufacturers like Henkel India and Procter and Gamble.
The performance of Epichlorohydrin (ECH )
plant was profitable with improved production and sales. The capacity
utilization of the plant was 80%. The higher sales volume compared to the
previous year was due to increased off-take in India. The margins improved in
line with the price trend in international market. The international price
trend seems to be moving north due to shut down of plant in Japan and reduced
availability of products from Russia. Margins could have been better but for
the high price of propylene and cost of power.
The performance of the Caustic Soda / Chlor
Alkali division, in terms of production and sales, was maintained in 2010-11 as
well. Profitability was, however, affected due to non-availability of
industrial grade salt, power cuts / restrictions on usage of power by TNEB
leading to higher reliance on high cost captive power. The increased cost of
production could not be fully passed on to the consumer due to market
competition.
During March 2011, as a part of their business
restructuring initiative, TPL divested 89% of its equity in Henkel India
Limited, an FMCG company involved in the business of laundry and home care,
cosmetics and toiletories.
TPL has reported a net profit after tax of
Rs.195.000 Millions for the year 2010-11 as against Rs.107.700 Millions during
2009-10. In view of the improved profit, the Board of Directors of TPL has
proposed a dividend of 10%.
Tuticorin Alkali Chemicals and Fertilisers Limited (TAC)
Consequent to the restart of SPIC’s Ammonia
Plant, TAC recommenced its manufacturing operations from Oct 2010. During the
year, based on the actual production period of 146 days TAC produced 27,621 MT
of Soda Ash, 23,105 MT of fertilizer grade Ammonium Chloride and 225 MT of
Sodium Bicarbonate and achieved a turnover of Rs.476.000 Millions. TAC had
received an export order from Malaysia for 5,200 MT of Ammonium Chloride
Fertilizer Grade and further orders are likely to continue. The restructuring
proposal of the Company with secured lenders is to be placed before the CDR EG
for its approval followed by submission of the Draft Rehabilitation Scheme
(DRS) of the Company to BIFR through the Operating Agency viz., IDBI Bank
Limited.
Orchard Microsystems Limited (OML)
OML had opted for voluntary liquidation under
Easy Exit Scheme 2011 and filed the necessary documents with the Ministry of
Corporate Affairs. In view of the above, OML has drawn its financial statements
for the period from 1 April 2010 to 25 April 2011 and reported a loss of
Rs.15.557 Millions.
SPIC Fertilizers and Chemicals FZE, Dubai (SFC FZE)
During the first quarter of the Financial Year
2010-11, as a part of recovery process, the Jebel Ali Free Zone Authority
(JAFZA) in Dubai, has taken over the land, Plant and Machinery of SFC FZE. SFC
FZE did not have any other option in this matter. Simultaneously, the Plant and
Machinery stored in the Ras Al Khaimah Port, (RAK) were auctioned to realize
the storage charges payable to the RAK Port Authorities. The Promoters of SFC
FZE, viz., the Company and the Emirates Trading Agency (ETA), Dubai have
jointly decided to close the operations of the Project Company, SFC FZE in
Dubai to be followed by the closure of the Holding Company, SPIC Fertilizers
and Chemicals Limited, Mauritius.
SPIC Petrochemicals Limited (SPIC Petro)
Consequent to the take over of the assets and
effects of SPIC Petrochemicals Limited (SPIC Petro) by the Official Liquidator
(O L) during May 2010, SPC Petro ceased to be a subsidiary of SPIC. Asset
Reconstruction Company (India) Limited (ARCIL) approached the Hon’ble High
Court of Madras to allow them to take possession of the assets and effects of
SPIC Petro under Section 13(4) of the Securitisation and Reconstruction of
Financial Assets and Enforcement of Security Interest Act 2002 (SARFAESI ACT).
Accordingly, the Hon’ble High Court of Madras, vide its Order dated 20 Dec 2010
directed the O.L to handover the possession of the above assets and effects of
SPIC Petro to ARCIL and ARCIL took possession of the same on 4 Jan 2011. Since
then, it is under the custody of ARCIL. Chennai Petroleum Corporation Limited
(CPCL) has obtained an interim injunction order from the Hon’ble High Court of
Madras restraining ARCIL from encumbering SPIC Petro lands and to set aside the
Orders passed by the Madras High Court on 20 Dec 2010 in the Applications filed
by ARCIL against the O.L.
FINANCE
REWORK PACKAGE
Asset Reconstruction Company (India) Limited
(ARCIL) and other financial institutions (except one lender) have approved the
rework package dated 13 March 2010 through Corporate Debt Restructuring (CDR)
mechanism (read with Term Sheet of ARCIL dated 28 March 2010) on successful
implementation of which the Company would be eligible for substantial reduction
in debts and interest accrued thereon. The Company has paid to ARCIL and other
secured lenders Rs.82,55.515 Millions till 31 March 2011. During the year the
Company had paid a sum of
Rs.46,55.568 Millions (Previous year
Rs.35,99.947 Millions) for distribution to secured lenders (including to those
whose debts had not been assigned to ARCIL). ARCIL and certain other secured
lenders have also converted part of the debts amounting to Rs.5,74.500 Millions
into equity as stipulated in the CDR Rework Package, out of which Rs.274.500
Millions was converted during the current year and Rs.300.000 Millions was
converted during the previous year. Though the Company has commenced payment of
dues to ARCIL, credit has not been taken for the expected relief in loan and
interest liabilities in view of the delay in the payment of installments and
pending satisfactory completion / compliance of various conditions stipulated
in the said package.
Pursuant to the rework package approved by
ARCIL and other secured lenders, the Company had divested its entire
shareholding in Indo-Jordan Chemicals Company Limited, Sical Logistics Limited
and EDAC Engineering Limited. It also divested a major portion of the
shareholding in Manali Petrochemical Limited. The sale proceeds were fully
utilized for settlement of secured debts.
The profit on sale of these investments was
Rs.1404.895 Millions.
Further, the Company in coordination with
ARCIL monetized certain non-core assets for a value of Rs.998.714 Millions and
incurred a loss of Rs.(346.319) Millions due to revaluation exercise carried
out in March 2006 when the market prices were ruling high.
OPERATIONS
The Company executed a Memorandum of
Understanding with Indian Oil Corporation Limited (IOCL) on 19 April 2010
mutually agreeing to the terms and conditions for resumption of supply of
Naphtha and Furnace Oil and settlement of past dues. The Supply Agreement was
also executed by the Company with IOCL on 24 April 2010. During the year, the
Company has paid Rs.1100.000 Millions towards settlement of past dues,
including a sum of Rs.300.000 Millions released by the lead bank from the Trust
and Retention Account (TRA).
The start up of the nitrogenous Plants were
delayed due to an unexpected machinery break down. After rectifying the
defects, the nitrogenous Plants recommenced operations from 9 October 2010 and
have been running steadily thereafter. The Company has also availed working
capital facility for purchase of raw materials required for phosphatic
fertilizer production. Consequent to the delay in the commencement of Urea
production, there was an operating loss on account of lower absorption of fixed
costs. During the current year, there was an increase in fixed cost reimbursement
by the Department of Fertilizers for Urea operations. The introduction of the
Nutrient Based Subsidy (NBS) for phosphatic fertilizer resulted in additional
realization of subsidy. With the recommencement of nitrogenous plants, stepping
up of the production of phosphatic fertilizers consequent to the tie up of raw
materials and increase in realization of subsidy, the division was able to
achieve a turnover of Rs.14621.505 Millions and earn a profit of Rs.3,37.822
Millions .
During the year, the Company had sold
Fertilizer Companies Government of India Special Bond with a face value of
Rs.43.490 Millions at a discount resulting in a loss of Rs.6.089 Millions.
The non-operation of Pen G Unit from 15
January 2010 onwards is due to the unremunerative prices of Pen G. Pursuant to
the possession of land and buildings at Maraimalainagar by ARCIL, inability to
restart the Pen G operations and the non-viability of operations relating to R
and D and API, resulted in a steep drop in turnover as well as an increase in
operating loss. ARCIL also took possession of the immovable properties of the
Pharma Unit at Cuddalore. The loss suffered by the Division during the current
year was Rs. (5,22.741) Millions.
The SMO Division and the Agri Business
Division earned profits during the current year.
The Company had suffered a loss of
Rs.(2,38.740) Millions before taking into account the profit/loss on account of
sale of assets and investments.
The Profit for the year after exceptional item
and tax was Rs.8,19.836 Millions. The accumulated loss has reduced from
1,57,36.883 Millions as on 31 March 2010 to Rs.1,49,17.047 Millions as on 31
March 2011.
MANAGEMENT DISCUSSION AND ANALYSIS REPORT
Agriculture Scenario
India’s food production crossed 235 million tonnes
during 2010-11 and the previous highest production, at 233 million tonnes, was
achieved in 2008-09. In 2010-11, the country produced 30.2 million tonnes of
oilseeds and 17.2 million tonnes of pulses apart from 94.5 million tonnes of
rice and 84 million tones of wheat. Maize production was 30 million tonnes,
sugarcane 340 million tonnes and cotton 39 million bales.
Agriculture also recorded a 5.4% growth
compared to less than 4% growth achieved earlier. The record food production
was possible, thanks to a good monsoon, spread uniformly across major parts of
the country. More important, it was backed up by vigorous monitoring of crops
with timely technological interventions and implementation of integrated pest
management modules.
Timely supply of inputs and a strong
pest/disease surveillance mechanism helped to augment production. Food
production in their country could be doubled with good hybrid seeds, better
farm management in weeds and pests control and application of fertilizers based
on soil / plant requirement and also minimizing post-harvest losses. However,
Indian agriculture was grappling with major problems including reduction in
land availability due to urbanization.
Government of India is contemplating to
increase cropping intensity by which farmers would be encouraged to opt for
multiple cropping, diversify into horticultural crops and take up
inter-cropping and short-duration crops, all of which could help to maintain
soil fertility.
Degradation of land, soil alkalinity and
emergence of new crop diseases in the wake of changing climatic conditions were
other factors that could affect agriculture.
To augment food production, the emphasis would
shift from primary to secondary agriculture in the next Five-Year Plan which
includes value addition, post-harvest crop management and quality assurance.
Fertilizer Industry Scenario
India, being the largest consumer of Chemical
fertilizers experienced tough times because of steep increase in price of all
agro inputs during this year due to over-dependence on raw materials and
intermediaries from international markets.
Consumption level of urea was static during
2007-2010 at around 26 MMT, whereas in the year 2010-11, consumption has gone
up by 7% over the previous years.
Of all the fertilizers, NPK consumption
recorded a very high growth rate of 57% compared to 2007-08. The growth was
very gradual from 9% in 2008-09 to 15% in 2009-10 and 26% in 2010-11. DAP
recorded a 53% increase over 2007-08 consumption. MAP, MOP and TSP showed
negative growth trends.
Fertilizer Policy
The present policy on Urea valid till March
2010 was extended beyond March 2010 pending finalization of new policy and
Department of Fertilisers (DoF) came out with a modified NPS suggesting
enhancement of fixed cost payable to Urea manufacturers since October 2010.
However, the empowered Group of Ministers has referred the policy to the
Committee of Secretaries (CoS) who had given the recommendation which is under
the consideration of the Government. Regarding disbursal of subsidy, Government
is now working out various models to directly disburse the subsidy to the
dealers (instead through industry) dealers to reach the farmers ultimately.
Fertilizer Industry Outlook
Fertilizer Industry in India is going through a
transition phase of migrating from price control regime to market driven
pricing mechanism (Nutrient Based Subsidy-NBS Scheme).Since one year has passed
after implementation of NBS for Phosphatic and Potassic Fertilizers, the
consumption of the above fertilizers have gone up despite marginal increase in
market prices. Due to steep increase in the global demand for fertilizers, the
availability of all the fertilizers are far below the requirement, creating
demand – supply imbalance, which has led to steep increase in the prices of all
the fertilizers. The Indian importers have tied-up DAP with international
suppliers for the year 2011-12. Since the subsidy payable is fixed under NBS ,
there is no scope for importers to bring the product at the prevailing price of
680 US Dollars per MT and this may lead to shortages in the ensuing Rabi
season. The international price of agri produce has also gone up steeply
resulting in enhanced demand for fertilizers globally. Food production in the
country has surpassed earlier records and farmers are able to pay marginally
higher price for the quality fertilisers. Consumption of fertilizers is likely
to go up in their country in line with rest of the world due to adoption of
intensive and modern farm technology and with positive approach by the
Government; fertilizer industry in their country has good potential to grow in
the years to come.
PHARMA
Operations, opportunities and outlook
Pen-G SBU : With all-round unfavorable operational
factors and the rejection of proposal of Anti dumping duties, it does not
justify the continuance of the Pen-G business. China has built up huge
capacities of fermentation for various products based on large volume
fermentation, which would be extremely difficult to compete without a level-playing
field. The plant being a dedicated one for Penicillin G and also Penicillin G
being a betalactam compound, it is extremely difficult to modify the product
portfolio and to suit the available infrastructure (fermenters of 100 KL sizes
and dedicated extraction and recovery systems) and make it a commercially
viable entity. The Company is of the view to permanently exit from the Pen-G
business.
API and R and D : The Active
Pharmaceutical Ingredients (API) industry in India was about USD 6.65 billion
in 2010, witnessing a growth of 15% over 2009. The present existing business
model of this SBU is too small and insignificant compared to the size of the
Indian/Global market. Pursuant to the exit from Maraimalainagar complex during
October 2010 and as a result of being out of the API market for about 1 year,
setting up of an appropriate infrastructure and business model in future, is
not justifiable. The existing minimal infrastructure available at Cuddalore
would be utilized as a specialized downstream plant for Enzyme operations and
the Company plans to be a limited niche player in the Enzyme SBU and to focus
on developing processes for bio-extractions, conversions and synthetic
processes for auxillary performance chemicals in the future. With this step, the
Company has decided to exit from API Unit and RandD activity.
The Formulations industry in India was
close to USD 15.55 billion in 2009 witnessing a growth of 17% over 2009. India
is a major exporter of finished dosages with operations across the world and
has earned the name as one of the most qualitative and competitive
manufacturers. It is believed that with major patent expiries around the
corner, the finished dosage market could grow to almost USD 27~30 billion by
2013-14. The present existing business model of this SBU is too small and
insignificant compared to the size of the Indian/Global market. Company has
made fresh product registration initiatives in Africa, Central American
countries which is expected to yield positive results during the current year.
The Company’s efforts in setting up sale and distribution network in Tamilnadu
has been completed while the efforts are being made to expand the Network in
other States which would make the Unit commercially successful. Since the plant
was established during 1995, in compliance with ever increasing demands of
statutory regulations, upgradations are being planned in the coming years for
continued sustenance and growth in the Unit. With better infrastructure, third
party accreditations will be attempted, with the aim to expand into newer
overseas markets and to cater to large Indian Companies.
In Industrial Enzymes business, the
Unit continued to consolidate upon its strength of technical marketing in the
Leather, Poultry and Tea Segments, where the sales growth and increase in
market share was positive for the third year in succession. Further thrust is
being imposed for expanding base of distributor’s, customer’s, products in
domestic markets for sustained growth. New initiatives for Poultry feed additives
through tie-up with reputed Overseas suppliers are on the anvil. Exports to
China, Vietnam and Dubai gained ground in the current year and focused plans
have been set-up for increasing value and volumes in these markets; besides a
few more markets are being identified for fuelling growth. In view of the
shifting of the infrastructure from Maraimalainagar to Cuddalore, the Company
is currently formulating Enzymes based on outsourced concentrates thus denying
the benefit of utilizing its own manufactured enzymes. Cellulase culture +
technology knowhow was procured and laboratory and Pilot Plant trials have been
undertaken successfully and it is explored to commercially launch the product.
Company is proposing to avail technology upgradation in respect of the existing
product, viz., Protease and Amylase while efforts are being made to procure
knowhow for new products viz., Xylanase and Pectinase. A modern state-of the-
art multi-purpose Enzyme plant with fermentation capabilities ranging from
small laboratory 3L to Pilot scale fermenters of 1500 L and further larger
commercial setup of series of 9 KL and 30 KL fermenters, is being planned by
the Company which is expected to enhance its market in the Leather, Textile,
Tea processing, Poultry feed and additive industries.
ENGINEERING/CONSTRUCTION SERVICES (SMO)
Transmission and Distribution Unit (T and D)
To meet the ever increasing demand for power,
the Government is planning to increase the installed capacity to 480,000 MW to
the nation’s power generation, formation of a national power grid and continued
focus on modernization and upgradation of power network. The Government is also
planning to install majority of 765/1200/800 kV lines to avoid the major issues
of right of way and corridor problems. Government of India has plans to
construct grids for evacuating the power generated on Build, Own. Operate and
Transfer (BOOT) basis. The Company is also dialoguing with potential partners
(executing on BOOT basis) for participation as a consortium for various
Transmission Line Packages. The Unit also executes OHE (Overhead
Electrification of Railway tracks) for the Railways. Rail Vikas Nigam Limited
has plans to expand the rail route and hence SMO plans to capitalize on these
business opportunities.
SMO successfully completed one major 400 kV
double circuit Damoh – Bhopal transmission line project in Madhya Pradesh
during the period .
The following projects are presently under
execution by SMO:
• Nine transmission line projects and one
rural electrification project for Power grid for a value of Rs.7686.300
Millions;
• Three transmission lines and two sub-station
projects in Jammu and Kashmir for the Power Development Department, Government
of Jammu and Kashmir for a value of Rs.554.800 Millions; and
• Four railway electrification projects for
Central Organisation for Railway Electrification (CORE), in Uttar Pradesh,
Orissa and Bihar for a value of Rs.1605.100 Millions.
The Unit has been awarded contract by Rajasthan
Rajya Vidyut Prasaran Nigam Limited (RRVPNL) and Coastal Energen for a value of
Rs.1543.100 Millions.
The expanding business scenario has attracted
many new players and hence the field has become fiercely competitive. Further,
in a specialized area of operation like transmission and distribution lines,
attracting and retaining the best human talent is a challenge, requiring focus
in recruiting and retention of such employees.
UNAUDITED
FINANCIAL RESULTS (STANDALONE) FOR THE THIRD QUARTER ENDED 31ST DECEMBER 2011
(Rs. In Millions)
|
S.No. |
|
Quarter
ended |
Quarter
ended |
Nine
months ended |
|
|
Description |
31st Dec
2011 |
30th Sep
2011 |
31st Dec
2011 |
|
|
|
(Oct'11 -
Dec'11) |
(Jul'11 -
Sep'11) |
(Apr'11
-Dec'11) |
|
|
|
(Unaudited) |
(Unaudited) |
(Unaudited) |
|
1 |
Income |
|
|
|
|
|
(a) Net
sales/Income from Operations |
7159.226 |
10874.530 |
27743.180 |
|
|
(b) Other
operating income |
47.853 |
135.121 |
213.273 |
|
|
Total Income |
7207.079 |
11009.651 |
27956.453 |
|
2 |
Expenditure |
|
|
|
|
|
(a)
(Increase)/decrease in stock in trade and work in progress |
150.459 |
60.705 |
184.159 |
|
|
(b)
Consumption of raw materials |
4158.663 |
6310.552 |
15878.732 |
|
|
(c)
Materials and Equipments for Construction Contracts |
- |
692.384 |
1486.766 |
|
|
(d)
Purchase of traded goods |
31.983 |
113.025 |
208.888 |
|
|
(e) Power and
fuel charges |
1803.235 |
1691.668 |
5243.668 |
|
|
(f )
Employees cost |
126.519 |
244.827 |
533.742 |
|
|
(g)
Depreciation |
127.794 |
192.387 |
508.839 |
|
|
(h)
Exchange (Gain)/Loss(Net) |
307.758 |
431.882 |
748.792 |
|
|
(i) Other
expenditure |
581.997 |
934.357 |
2467.069 |
|
|
Total Expenditure |
7288.408 |
10671.787 |
27260.655 |
|
3 |
Profit/
(Loss) from Operations before Other Income, Interest and Exceptional items |
|
|
|
|
|
(1-2) |
(81.329) |
337.864 |
695.798 |
|
4 |
Other
Income |
4.065 |
33.146 |
53.555 |
|
5 |
Profit/(Loss)
before Interest and Exceptional Items (3+4) |
(77.264) |
371.010 |
749.353 |
|
6 |
Interest |
152.258 |
411.457 |
650.508 |
|
7 |
Profit/(Loss)
after Interest but before Exceptional Items (5-6) |
(229.522) |
(40.447) |
98.845 |
|
8 |
Exceptional
Items (a)
Reversal of Provision for Loss on Sale of a Business undertaking made in the |
|
|
|
|
|
previous
quarter |
- |
215.003 |
- |
|
|
(b)Profit
/ (Loss) on Sale of Business undertakings (Net) |
216.628 |
(174.556) |
42.072 |
|
|
(c)Profit
/ (Loss) on Sale of Fixed assets (Net) (Note 5 (a)) |
66.851 |
- |
66.851 |
|
|
(d) Profit
on sale of investments |
- |
56.289 |
56.289 |
|
|
(e)
Retrenchment Compensation (Note 5 (b)) |
2.069 |
(53.226) |
(107.931) |
|
|
(f) Excess
Liability written back (Note 5(c)) |
224.611 |
- |
224.611 |
|
9 |
Profit /
(Loss) after Exceptional items but before tax (7+8) |
280.637 |
3.063 |
380.737 |
|
10 |
Tax
expenses |
|
|
|
|
|
Current
tax |
- |
- |
- |
|
|
Deferred
tax |
- |
- |
- |
|
|
Provision
for tax relating to earlier years |
- |
259.246 |
259.246 |
|
11 |
Profit /
(Loss) for the period before extraordinary items (9-10) |
280.637 |
(256.183) |
121.491 |
|
12 |
Extraordinary
item (net of tax expense) |
- |
- |
- |
|
13 |
Profit /
(Loss) for the period after extraordinary items and tax(11-12) |
280.637 |
(256.183) |
121.491 |
|
14 |
Paid-up
equity share capital (Face Value of Rs. 10 per share) |
1662.784 |
1662.784 |
1662.784 |
|
15 |
Reserve excluding revaluation reserves
as per balance sheet of previous accounting year |
|
|
|
|
16 |
Debit
balance in Profit and loss account |
|
|
|
|
17 |
Earnings
Per Share (EPS) |
|
|
|
|
|
a) Basic
earnings per share before and after extraordinary |
|
|
|
|
|
items (EPS)
(Rs) (Not annualised) |
1.66 |
(1.57) |
0.65 |
|
|
b) Diluted
earnings per share before and after extraordinary |
|
|
|
|
|
items
(EPS) (Rs) (Not annualised) |
1.66 |
(1.57) |
0.65 |
|
18 |
Public shareholding
(Excluding shares against which GDR's are issued) |
|
|
|
|
|
(a) Number
of Shares |
80689676 |
80690176 |
80689676 |
|
|
(b)
Percentage of Shareholding |
54.12 |
54.12 |
54.12 |
|
19 |
Promotors
& Promoter group shareholding (Excluding shares against which GDR's are
issued) a) Pledged/Encumbered |
|
|
|
|
|
- Number of shares |
10486639 |
10486639 |
10486639 |
|
|
- Percentage of shares (as a % of the total |
|
|
|
|
|
shareholding of promoters and promoter group) |
15.33 |
15.33 |
15.33 |
|
|
- Percentage of shares (as a % of the total |
|
|
|
|
|
share capital of the Company) |
6.31 |
6.31 |
6.31 |
|
|
b) Non -
Encumbered |
|
|
|
|
|
- Number of shares |
57908209 |
57907709 |
57908209 |
|
|
- Percentage of shares (as a % of the total |
|
|
|
|
|
shareholding of promoters and promoter group) |
84.67 |
84.67 |
84.67 |
|
|
- Percentage of shares (as a % of the total |
|
|
|
|
|
share capital of the Company) |
34.82 |
34.82 |
34.82 |
SEGMENT WISE
REVENUE, RESULTS AND CAPITAL EMPLOYED
FOR THE
THIRD QUARTER ENDED 31ST DECEMBER 2011
(Rs.
In Millions)
|
|
|
Quarter
ended |
Quarter ended |
Nine months ended |
|
|
Description |
31st Dec
2011 (Oct'11 - Dec'11) |
30th Sep 2011 (Jul'11 - Sep'11) |
31st Dec 2011 (Apr'11 -Dec'11) |
|
|
|
(Unaudited) |
(Unaudited) |
(Unaudited) |
|
A |
Segment
Revenue 1
Continuing |
|
|
|
|
|
a) Agro
Inputs - Urea Operations |
6398.348 |
6572.343 |
19046.445 |
|
|
b)
Formulation |
29.586 |
27.536 |
77.585 |
|
|
c) Others |
33.614 |
65.564 |
164.564 |
|
|
d)
Unallocated Income |
12.691 |
34.539 |
62.791 |
|
|
2
Discontinued |
|
|
|
|
|
a) Agro
Inputs - Phosphatic Operations |
734.885 |
3358.844 |
6736.772 |
|
|
b) Pharma related
activities other than Formulation and |
|
|
|
|
|
Enzymes |
2.020 |
92.041 |
98.263 |
|
|
c) SMO |
- |
891.930 |
1823.588 |
|
|
Sales /
Income from operations |
7211.144 |
11042.797 |
28010.008 |
|
B |
Segment Results Profit/(Loss)
(Before Tax and Interest) For each Segment 1 Continuing |
|
|
|
|
|
a) Agro
Inputs - Urea Operations |
228.606 |
589.066 |
1298.074 |
|
|
b)
Formulation |
(1.080) |
(2.384) |
(7.311) |
|
|
c) Others |
(9.214) |
6.147 |
(0.004) |
|
|
d)
Unallocated |
104.679 |
(193.619) |
(318.521) |
|
|
2
Discontinued |
|
|
|
|
|
a) Agro
Inputs - Phosphatic Operations |
54.498 |
(25.269) |
278.043 |
|
|
b) Pharma
related activities other than Formulation and |
|
|
|
|
|
Enzymes |
55.406 |
(6.278) |
(52.911) |
|
|
c) SMO |
- |
46.857 |
(166.125) |
|
|
Total |
432.895 |
414.520 |
1031.245 |
|
|
Less:
Interest |
152.258 |
411.457 |
650.508 |
|
|
Profit/(Loss)
Before Tax |
280.637 |
3.063 |
380.737 |
|
C |
Capital Employed (Segment Assets
- Segment Liabilities) 1 Continuing |
|
|
|
|
|
a) Agro
Inputs - Urea Operations |
2662.059 |
2739.269 |
2662.059 |
|
|
b)
Formulation |
61.603 |
57.553 |
61.603 |
|
|
c) Others |
154.065 |
274.890 |
154.065 |
|
|
d)
Unallocated |
(12967.898) |
(16309.910) |
(12967.898) |
|
|
2
Discontinued |
|
|
|
|
|
a) Agro
Inputs - Phosphatic Operations |
- |
2694.536 |
- |
|
|
b) Pharma
related activities other than Formulation and |
|
|
|
|
|
Enzymes |
(49.316) |
123.537 |
(49.316) |
|
|
c) SMO |
- |
- |
- |
|
|
Total |
(10139.487) |
(10420.125) |
(10139.487) |
2. Contingent Liabilities
(a) Claims not
acknowledged as debts:
(i) The District Collector,
Tuticorin vide his letter dated, 21 August 2009 had demanded Rs. 1687.397
Millions (Previous year Rs. 1687.397 Millions) towards lease rent for the
utilization of 415.19 acres of sand quarry poramboke lands by the Company for
its effluent treatment and storage of Gypsum for the period from 1975 to 2008
while the assignment proposal submitted by the Company in the year 1975 to the
State Government is still pending. The Company had filed a writ petition
challenging the demand before the Hon’ble Madras High Court and the court
granted interim stay vide its order dated 21 April 2010 on further proceedings.
(ii) The Phosphate
Chemical Export Association Inc. USA (Phoschem) filed a suit before the Hon’ble
Madras High Court for recovery of US$11.52 million (INR equivalent 514.368
Millions) during March 2006 towards supply of raw material to the Company. The
court passed an interim decree in favour of Phoschem for US$8.76 million (INR
equivalent 391.134 Millions) against which the Company fi led a Review Petition
on the ground that the Hon’ble High Court has not considered the realization of
US$6.31 million by Phoschem from the Insurance company. The Review Petition is
still pending before the Hon’ble High Court. The Company had already made a
provision of Rs. 387.220 Millions (Previous year Rs. 391.470 Millions) towards
this claim and the balance claim not acknowledged by the Company is Rs. 123.425
Millions (Previous year Rs. 124.780 Millions).
(iii) Groupe
Chimique Tunisian SA (GCT) initiated arbitration proceedings against the
Company for non payment of US$ 15.02 million together with interest towards
supply of Phosphoric Acid in the earlier years against which the Arbitral
Tribunal passed an award on 9 September 2009 directing the Company to pay a sum
of Rs. 730.000 Millions to GCT towards principal and Rs. 250.000 Millions
towards interest. The Company filed a petition before the Hon’ble Madras High
Court on 7 December 2009 for setting aside the award and the Court ordered
notice to GCT on 23 December 2009. The matter is pending before the Hon’ble
Madras High Court. As the Company had already made a provision of Rs. 656.552
Millions (Previous year Rs. 663.757 Millions), the remaining claim not
acknowledged by the Company on this account is Rs. 323.448 Millions (Previous
year Rs. 316.300 Millions).
(iv) As the
Nitrogenous plants were not in operation, Tamilnadu Water Supply and Drainage
Board (TWAD) has claimed payments on the basis of 50% allotted quantity of
water. Water Charges were paid to TWAD on the basis of actual receipt by
individual industries (since inception of 20 MGD Scheme) for the last 36 years.
The claims made by TWAD for Rs. 69.279 Millions is not acknowledged as debt, as
this differential value from April 2009 to December 2010 is not supported by
any Government Order and also the other beneficiaries are objecting to such
claims of TWAD.
(v) Other claims
against the Company, which are being disputed/challenged before the Courts -
Rs. 415.582 Millions (Previous year Rs. 416.705 Millions).
In respect of the
above claims, the Company has been advised that there are reasonable chances of
successful outcome of the Appeals / Petitions filed before the Hon’ble Madras
High Court/Government Authorities and accordingly no further provision is considered
necessary.
(b)
Guarantees/Security given to Banks/Financial Institutions on behalf of other
companies Rs. 450.000 Millions (Previous year Rs. 450.000 Millions)
(c) Other Bank
Guarantees outstanding Rs. 78.178 Millions (Previous year Rs. 80.307 Millions)
(d) Cumulative
amount of Preference Dividend and Dividend Tax thereon not provided for the
period from 1 April 2001 to 31 March 2011 is Rs. 211.230 Millions (Previous
year Rs. 193.594 Millions)
(e) No provision
has been considered necessary by the management for the following disputed
Income Tax, Sales Tax, Excise duty, Service tax, Electricity tax and Employees
State Insurance demands which are under various stages of appeal proceedings.
The Company has been advised that there are reasonable chances of successful
outcome of the appeals and hence no provision is considered necessary for these
demands.
|
Statute |
Nature
of Dues |
Forum where Dispute is pending |
Period to which the amount relates |
Amount involved (Rs. in Millions ) |
|
Central
Excise Act, 1944 |
Excise
Duty |
Commissioner of Central
Excise (Appeals) / Customs, Excise & Service Tax Appellate Tribunal |
1998-99
to 2007-08 |
34.663 (34.663) |
|
|
Service
Tax |
Commissioner of Central
Excise (Appeals) / Hon'ble Madras High Court |
2003-04
to 2007-08 |
12.423 (12.423) |
|
Sales Tax Act under various
State Enactments |
Local
Sales tax |
Deputy Commissioner
(Appeals) / Sales Tax Appellate Tribunal |
1996-97
to 2002-03 |
10.725 (11.079) |
|
Central
Sales Tax Act, 1956 |
Central
Sales Tax |
Deputy Commissioner
(Appeals) / Sales Tax Appellate Tribunal |
1998-99 and 1999-00 |
5.017
(4.667) |
* Includes
disputes relating to the period 1977 to 1992 decided by the ESI Court in favour
of the Company against which the Employees State Insurance Corporation has gone
on an appeal before the Hon’ble Madras High Court.
Out of the above
demand of Rs. 1542.231 Millions (Previous year Rs. 1509.882 Millions), an
amount of Rs. 348.811 Millions (Previous year Rs. 363.790 Millions) has been
deposited under protest/adjusted by relevant authorities.
(f) Certain
unsecured creditors have filed winding up petitions which are being defended by
the Company before the Hon’ble Madras High Court.
FIXED ASSETS
·
Freehold Land and
Development
·
Leasehold Land
·
Building and Sanitary
Fittings
·
Plant and Machinery
·
Electrical fittings and
water supply installations
·
Furniture, Fixtures,
Office and Other Equipment
·
Roads
·
Railway siding
·
Vehicles
·
Technical know-how
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered
forfeited for violation of money laundering or international anti-terrorism
laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals have
been formally charged or convicted by a competent governmental authority for
any financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.49.25 |
|
|
1 |
Rs.77.19 |
|
Euro |
1 |
Rs.65.29 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
2 |
|
OPERATING SCALE |
1~10 |
2 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
2 |
|
--PROFITABILIRY |
1~10 |
2 |
|
--LIQUIDITY |
1~10 |
2 |
|
--LEVERAGE |
1~10 |
2 |
|
--RESERVES |
1~10 |
-- |
|
--CREDIT LINES |
1~10 |
2 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
20 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
- |
NB |
New Business |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.